Since the outbreak of the epidemic, the economic structure of global trade has undergone major changes. The increase in trade tariffs between China and the United States and the trade frictions between China and Australia have caused the overall global trading system to be in a state of "toggling".  Although the current international trade environment does not seem so optimistic, we are still rationally and objectively analyzing every possible opportunity in this situation.

"New Angle"—As the United States increases the money printing, the US dollar index has entered a downward trend since March,2020. There is no sign of reversal so far.  Since the end of May, the renminbi has continued to appreciate. The exchange rate of the dollar against the renminbi has continued to appreciate from 7.17 at the end of May to the current breakthrough of 6.8.  Such an exchange rate has caused difficulties in the export-based business that we thought of earlier.  Therefore, we boldly try to change a "new angle"-from export to import-to think about the current market environment.  For example: According to our research and inspection results on the domestic market, the import trade of cement clinker will be a good direction.

Cement clinker: The current market situation is that China imported a total of 2.5 million tons of foreign cement clinker in August.  Imports totaled 2.5 million tons in September. Our company plans to target the East China market with convenient transportation and high market prices. It aims at cement plants along the Yangtze River, especially in the developed areas of the middle and lower reaches of the Yangtze River. At present, it is planned to supply one ship of 50,000 tons per month, and the import amount of two ships will be increased to 15 million to 30 million per month.

“New Thinking”-At the time when the COVID-19 epidemic had just stabilized, we tried to rely on the high-quality machinery resources of Hubei Province to successfully export some machinery and equipment to Australia, New Zealand and other regions.  However, with the slow transformation of the existing market, we found that although the profit margin of these machinery and equipment is very high, the production cycle is longer, over 1 month, and we cannot take advantage of our advantage as a “state-owned trading window”.  Therefore, we consider that the sharp decline in local coal exports to China due to friction between Australia and China will increase domestic demand for imported coal. Then, changing our thinking, from traditional mechanical products to bulk resource products trade will be a good choice.

According to statistics, China has imported 265 million ton of coal and is mainly concentrated in Huaneng Haimen, Zheneng Zhongmei (Zhoushan) and Datang Chaozhou Power plants. They take up 46% in total (Huaneng Haimen: 17%, Zheneng Zhongmei (Zhoushan): 15%, Datang Chaozhou: 14%) Therefore, we focus on to communicate with those three main power plates. This relies on the strong support of the company's leaders and the company's employees have experience in continuous and in-depth cooperation with Datang and Guoxin.  Start with a new mode of thinking, get rid of the inherent single sales model, to deal with the very harsh global trading environment system.

"New Angle" and "New Thinking" are a new attempt and a new reading of the global trade environment in different situation.